Advice on these courtesy cars at £300 a day during repair
Discussion
I’ve read various thread on here before. FIL involved in an accident. His car is months old and I suggested he give it to BMW to repair it properly given the age. His insurer said ok but won’t provide a courtesy car.
It’s worth noting that there is a dispute over who is at fault and it looks 50/50.
I turn up today and has a new E class courtesy car which is via some accident management firm (bmw suggested it). It’s £300 per day. I expressed disapproval and he said it’s totally free even if he was at fault. I’ve read the agreement and it says ‘for peace of mind we have taken out insurance against inability to claim the daily cost from the third party insurance company’.
Anyone know what this clause/policy is all about. The chances of non recovery from the other side are significant and would be in many claims. It sounds too good to be true. Can this still bite him in the wallet.
TIA
It’s worth noting that there is a dispute over who is at fault and it looks 50/50.
I turn up today and has a new E class courtesy car which is via some accident management firm (bmw suggested it). It’s £300 per day. I expressed disapproval and he said it’s totally free even if he was at fault. I’ve read the agreement and it says ‘for peace of mind we have taken out insurance against inability to claim the daily cost from the third party insurance company’.
Anyone know what this clause/policy is all about. The chances of non recovery from the other side are significant and would be in many claims. It sounds too good to be true. Can this still bite him in the wallet.
TIA
Be very cautious with this; I fell foul of it two years ago. Hit by another driver and Mercedes main dealer put me in touch with an accident management company when I asked to book my car in for repair. They use very ambiguous language and are at great pains to repeat ad nauseam that the cost of the car will be claimed back in the event of a “successful” no fault claim.
What you in fact sign up to is a “hire car” that you are liable for the cost of, AND a free insurance policy that they use should the other parties insurance refuse to cough up.
The driver that hit me refused liability. The accident management company did tap all to manage the accident (I had to do all the chasing of the repair etc.) I then had to spend 12 months co-operating with the claims recovery (phone interviews, numerous statements, documents) all with the underlying “threat’ should I cease to cooperate I would become liable for a bill that was rapidly approaching 15k (hire car, and the solicitors bill chasing the other drivers insurance.)
Culminated in a day in court. Other driver admitted liability on the day and the insurance company offered 80% of the bill. Accident company refused. Went to trial. Cue very unimpressed judge trying to establish how an accident management company didn’t “manage” an accident and let a large hire bill accrue.
Awarded less than 40% of the claim, so the insurance policy picked up the short fall. Thankfully I wasn’t out of pocket other than the hours of time.
Unless you are supremely confident the other driver is 100% liable and you are prepared to follow a convoluted process whilst they try to stiff the hire bill from the others insurers I’d look at what cooling off period you have and cancel sharpish, even if you have to pay some hire fee.
If it’s 50/50 you are on extremely dodgy ground. They can simply say you owe them the hire car cost, as the insurance they provide only activates with no fault.
Be very careful you haven’t access to another car or a courtesy car on your policy (that invalidates the accident management insurance usually and you’ll be liable- the onus is on you to check.)
Also be aware of the effect of “betterment” (I.e you shouldn’t be placed in an advantageous position post the event and if the car they provide is better than what you have the other insurance company will undoubtedly refuse to pay- cue the claim process.)
.
What you in fact sign up to is a “hire car” that you are liable for the cost of, AND a free insurance policy that they use should the other parties insurance refuse to cough up.
The driver that hit me refused liability. The accident management company did tap all to manage the accident (I had to do all the chasing of the repair etc.) I then had to spend 12 months co-operating with the claims recovery (phone interviews, numerous statements, documents) all with the underlying “threat’ should I cease to cooperate I would become liable for a bill that was rapidly approaching 15k (hire car, and the solicitors bill chasing the other drivers insurance.)
Culminated in a day in court. Other driver admitted liability on the day and the insurance company offered 80% of the bill. Accident company refused. Went to trial. Cue very unimpressed judge trying to establish how an accident management company didn’t “manage” an accident and let a large hire bill accrue.
Awarded less than 40% of the claim, so the insurance policy picked up the short fall. Thankfully I wasn’t out of pocket other than the hours of time.
Unless you are supremely confident the other driver is 100% liable and you are prepared to follow a convoluted process whilst they try to stiff the hire bill from the others insurers I’d look at what cooling off period you have and cancel sharpish, even if you have to pay some hire fee.
If it’s 50/50 you are on extremely dodgy ground. They can simply say you owe them the hire car cost, as the insurance they provide only activates with no fault.
Be very careful you haven’t access to another car or a courtesy car on your policy (that invalidates the accident management insurance usually and you’ll be liable- the onus is on you to check.)
Also be aware of the effect of “betterment” (I.e you shouldn’t be placed in an advantageous position post the event and if the car they provide is better than what you have the other insurance company will undoubtedly refuse to pay- cue the claim process.)
.
Edited by Gmlgml on Tuesday 24th July 21:15
Even if the 3rd party admits full liability there could still be issues going through accident management companies.
3rd party insurer could refuse to pay cost of hire car as it wasn't authorised by them and you'll be ultimately reliable for the costs.
Beware of accident management companies...
3rd party insurer could refuse to pay cost of hire car as it wasn't authorised by them and you'll be ultimately reliable for the costs.
Beware of accident management companies...
Years ago my wife borrowed my car to pick me up from hospital. On the way a lorry drove into her, witnessed by the police and was an open and shut their fault.
As i had been in hospital for a lengthy amount of time, I have to say I wasnt quite with it. But I had to phone admiral (from hospital) and they said I could have a hire car. I said yes and didn’t really understand what I had agreed to. I later realised it was one of these management hire cars not a courtesy car I thought it was.
Anyway, fast forward to now (3 years on) and I was summoned to court next month to defend the scandalous costs this management company wanted off the other driver for this hire car. It was made very clear I was insured and wouldn’t have to pay whatever the outcome, but they wanted all sorts off me from pay slips to bank statements to submit in court.
I’ve been told this week that the other insurance has settled and don’t want to go to court.
For me this is a classic insurance company rip off which they will blame on pushing their prices up. Even though it’s them pushing it. I’m willing to bet admiral get a healthy slice of the inflated £1000’s these car hire firms charge the other insurer.
These are the same insurers who blame fake whip lash claims, then are desperate for you to make a claim.
As i had been in hospital for a lengthy amount of time, I have to say I wasnt quite with it. But I had to phone admiral (from hospital) and they said I could have a hire car. I said yes and didn’t really understand what I had agreed to. I later realised it was one of these management hire cars not a courtesy car I thought it was.
Anyway, fast forward to now (3 years on) and I was summoned to court next month to defend the scandalous costs this management company wanted off the other driver for this hire car. It was made very clear I was insured and wouldn’t have to pay whatever the outcome, but they wanted all sorts off me from pay slips to bank statements to submit in court.
I’ve been told this week that the other insurance has settled and don’t want to go to court.
For me this is a classic insurance company rip off which they will blame on pushing their prices up. Even though it’s them pushing it. I’m willing to bet admiral get a healthy slice of the inflated £1000’s these car hire firms charge the other insurer.
These are the same insurers who blame fake whip lash claims, then are desperate for you to make a claim.
Sounds like basically they've hedged against the possibility the insurers will refuse to pay the full bill and you'll have no liability. It seems a really poor way to explain it, but presumably they can't just say you have no liability, because then the insurers could use that as a reason not to pay.
ging84 said:
Sounds like basically they've hedged against the possibility the insurers will refuse to pay the full bill and you'll have no liability. It seems a really poor way to explain it, but presumably they can't just say you have no liability, because then the insurers could use that as a reason not to pay.
That’s why it sounds dodgy. Imagine the premiums. No wonder the daily rate is so high. He’s just read the agreement and it says if he cancels, he’s in the hook for all costs to date, not just the daily rate but their costs. I’m going to see if it covered by credit contracts I.e is there an out under cooling off.anonymous said:
[redacted]
His policy said no courtesy car IF he got to choose BMW as the repairer. I think BMW will drag their feet re the repair. I assume they profit from the ‘hire’ too as does the underwriter if the insurance policy. It’s a ball ache. If he cancels now he must pay their costs plus hireage. He’s up for 5-600 at least.
Like I said I’m disappointed he just signed up for this without checking. I told him at the outset to be careful with loan cars and to let me know.
I think the concensus is, he is liability free but will be caught up ‘assisting’ them plus lots of hassle. Maybe it will teach him a lesson.
InitialDave said:
Was this recommended by the BMW dealer, or some kind of higher level repair management department or something?
Sounds like a "never deal with them again" situation to me.
BMW dealership suggested it. ‘We don’t have a courtesy car, give this crowd a call’ I bet the dealer is getting a kick back.Sounds like a "never deal with them again" situation to me.
king joke. I fear someone is going to be placed over a barrel and gone to town on, dry. Something else to be aware of is that the trade body for contract hire companies have something like 50 categories of car and should ensure that the replacement car is from the appropriate category. They also have agreed daily rates for each category.
When I was in a similar position I found out that the agreed daily rate for the car I was given was about £180 but the contract hire people were charging over £240. As I could see myself being put in a position where the third parties insurer accepted liability but would only pay the agreed rate leaving me liable for £60 per day I rejected it straight away.
My car at the time was a Jaguar XF Luxury 2.2D so broadly similar to an E220D. I suspect that your FIL's contract hire company are overcharging.
When I was in a similar position I found out that the agreed daily rate for the car I was given was about £180 but the contract hire people were charging over £240. As I could see myself being put in a position where the third parties insurer accepted liability but would only pay the agreed rate leaving me liable for £60 per day I rejected it straight away.
My car at the time was a Jaguar XF Luxury 2.2D so broadly similar to an E220D. I suspect that your FIL's contract hire company are overcharging.
‘think the concensus is, he is liability free but will be caught up ‘assisting’ them plus lots of hassle. Maybe it will teach him a lesson.”
He may not be liability free, that’s what needs considering.
Read the online reviews of some of these companies.
They can decide weeks or even months into the car hire period to withdraw the insurance cover that funds claiming the cost back for it if they feel the case isn’t winnable.
So, unless your friend is supremely confident that it’s a “100% not their fault accident” they could be on the hook for thousands. Worst I read was someone being pursued for just shy of 37k after the company assessed it was likely to be a 50/50 and there was some suggestion the person with the hire car had access to another vehicle (spouse’s I think.)
And just to confirm the stupidity of the process. A £2900 bill (at main dealer rates - so you can imagine that didn’t go far, just paint damage, no new panels and labour) ended up just shy of 28k with approx 10.5k being hire care charges and the rest the legal fees for the AM company to chase it. Utter madness.
He may not be liability free, that’s what needs considering.
Read the online reviews of some of these companies.
They can decide weeks or even months into the car hire period to withdraw the insurance cover that funds claiming the cost back for it if they feel the case isn’t winnable.
So, unless your friend is supremely confident that it’s a “100% not their fault accident” they could be on the hook for thousands. Worst I read was someone being pursued for just shy of 37k after the company assessed it was likely to be a 50/50 and there was some suggestion the person with the hire car had access to another vehicle (spouse’s I think.)
And just to confirm the stupidity of the process. A £2900 bill (at main dealer rates - so you can imagine that didn’t go far, just paint damage, no new panels and labour) ended up just shy of 28k with approx 10.5k being hire care charges and the rest the legal fees for the AM company to chase it. Utter madness.
Edited by Gmlgml on Wednesday 25th July 09:27
InitialDave said:
Burwood said:
BMW dealership suggested it. ‘We don’t have a courtesy car, give this crowd a call’ I bet the dealer is getting a kick back.
My approach would be to talk to the dealer along the lines of the car's going back immediately, and they're going to make any "you're liable for hire costs to this point" stuff go away.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff